Thailand, Indonesia and India are three strategic countries for the LG Electronics of South Korea to aggressively expand its business despite the economic downturn.

Simon Halm, vice-president for residential air-conditioner marketing at LG Electronics Digital Appliance Co, said that while the global financial crisis had affected its business, the company was confident it could prevail.

"It is a good time for investment because raw material prices are going down and this is an opportunity for LG to acquire good brands at cheaper prices," he said.

He also believes the Asian economy is stable and there are several promising markets to expand business.

Sung Jae Choi, another company executive, said that in order to sustain profits and strengthen competitiveness, costs and assets would be managed very efficiently.

Short- and medium-term strategies will focus on premium marketing, brand building, efficient cost management and business restructuring.

LG repositioned its brand from "value for money" to "stylish design and smart technology" earlier this year.

"Thailand is one of LG's strategic countries to reposition its brand image because of outstanding performance. The electrical appliance market is big with an opportunity to grow more than in other countries," said Suparang Anucha, marketing communication manager of LG's Thailand distribution arm.

Globally, LG has four main products: LCD TVs, mobile phones, household air-conditioners and commercial air-conditioners.

LG has been the global market leader of air-conditioners for seven consecutive years. Overall sales of LG air-conditioners were US$5 million last year and are expected to double by 2012. Of the total, 70% were residential and 30% for commercial use.

"We see potential to expand commercial air-conditioners because property construction in several countries such as Thailand and India will keep going," said Rana Virender P. Singh, LG assistant manager for air-conditioning.

He added that commercial demand should grow by 20-30% per year.

LG has eight air-conditioner factories worldwide including South Korea, China, India, Thailand, Saudi Arabia, Turkey and Brazil. It will move the production of some commercial air-conditioners from the Changwon factory to Rayong, Thailand next year.

"Thailand is a good geographic location for distribution to other countries in Asia. Also, LG has had a strong production facility in Thailand for several years," Mr Singh said.

Source:bangkokpost